My Age of Investment

"The acceleration from zero to 100 kilometers per hour is 3.7 seconds, the top speed is 200 kilometers per hour, and the cruising range on a single charge can reach 350 kilometers. Compared with other electric sports cars on the market, the performance of our Nikola is not inferior..."

In the conference hall of a high-end hotel in Silicon Valley, Musk stood on the stage wearing a headset and smiling broadly to introduce a red sports car next to him.

Hundreds of media reporters and spectators in the audience watched Musk and the new electric sports car on the stage intently.

In a corner of the audience, Straubel, who was wearing a peaked cap and a mask, lowered his voice and said to Xia Jingxing, who was also dressed next to him: "Darren, this Musk is a powerful enemy! He really made a prototype car."

Xia Jingxing looked at Musk who was laughing and dancing on the stage, and said softly: "I have never underestimated him. Judging from his decisiveness in being refused to invest in Tesla and then turning around to establish Nikola, this is a He is a ruthless person who has a firm will to start a business, sees the right direction, and is determined to complete the journey on his knees.”

Straubel nodded slightly, "Yes, this is a lunatic. Starting an electric car business is difficult enough, and he has to be distracted by building rockets.

SpaceX has failed twice in a row. I heard that it will launch another launch next year, but I don’t know if it can succeed. "

Xia Jingxing smiled and said, "It doesn't matter if he doesn't succeed, because as long as this guy doesn't completely bankrupt himself, he probably won't give up because of one more failure."

"Due to the war on the two fronts, Musk's personal finances are under great pressure. I heard that this guy sold all his beloved sports cars and houses."

Straubel pouted towards the stage, "I just hope that Nikolai will start booking and make a great comeback!"

Xia Jingxing said nothing, thinking carefully about the Nikola development reports he had collected in recent days.

Nikola was founded in 2004, and its development lags slightly behind Tesla.

But Musk has been holding back his energy and wants to surpass Tesla, and he is always different from Tesla.

In the past few years, Musk has invested tens of millions of dollars in building cars, and also attracted heavyweights such as Larry Page and Sergey Brin, JP Morgan, and the founder of eBay. Investors came to help, and the momentum was huge.

However, due to lack of foundation, Nikola has been stumbling in recent years.

In 2005, when Tesla's prototype car was unveiled at the auto show, Nikola also came to join in the fun, but the car could be seen and touched, but it could not be driven.

It was not until today, two years later, that Tesla launched a real prototype car. This shows how rough the prototype car that was unveiled at the auto show was, with only appearance and no core.

However, Xia Jingxing feels that Nikola is developing quite quickly. It took Tesla three years from its establishment to building a prototype, while Nikola took about two and a half years.

Regardless of Tesla's lack of funds in the early days, and Nikola's early detours, Tesla's R\u0026D efficiency is not much better than Nikola's, and it is more of a first-mover advantage. .

To say how much Tesla is ahead of Nikola, it depends on when the latter's cars will be mass-produced and delivered.

"How long do you think it will take for Nikola One to be delivered?"

Straubel glanced at his boss, thought seriously for a few seconds, and replied: "Referring to Tesla's situation, it can take as fast as one and a half years, or as slow as two years.

Of course, based on the information currently available, I cannot tell whether the mass production of Nikola One will encounter the same problems that Tesla Roadster has encountered, nor can I be sure whether Nikola will learn from our failure. "

Xia Jingxing said calmly: "Tesla must protect its intellectual property rights internally, and at the same time, we must prevent employees from changing jobs and causing the leakage of core business information. I don't want Nikola to touch us across the river.

Although Musk is a technology geek, he cannot violate objective business laws.

Although I don’t have the specific research and development status of Nikola One now, I can almost certainly say that mass production is a dead end. This is an important dividing line between PPT car manufacturers and doers.

However, Musk's business talent is indeed outstanding, and mass production should not cause much obstacles to him and Nikola.

When Tesla formulates its development strategy, it must prepare for the worst, that is, Nikola will complete mass production and delivery next year. "

Straubel looked solemn and replied: "Yes!"

Then he slowed down and said: "I will not underestimate Musk and Nikola. As our only opponents at present, I will give them the attention they deserve.

But even if they can successfully deliver the Nikola One next year, our Model S has already released a prototype and is accepting reservations. "

Xia Jingxing looked at the red sports car on the stage and nodded slightly.

Musk showed off an enchanting dance move on the stage, which caused the audience to scream wildly.

Musk clapped his hands and smiled: "OK, now comes the most exciting moment. How much should the price of an electric sports car with the best performance in the world be?"

The audience quickly fell silent, including Xia Jingxing and Straubel, who also stopped their discussion. They both looked at Musk on the stage. They were also very interested in Nikola's pricing strategy.

"$99,900!"

Musk looked at the audience with a smile, enjoying the overwhelming cheers.

After the scene calmed down, he continued: "This pricing has been repeatedly weighed internally by Nikola. We hope to use a cost-effective electric sports car to win market reputation, and at the same time bring electric vehicles into more families and make low-carbon Environmentally friendly travel has become a fashion.

Nikola is not in a hurry to make money, we are more concerned about market cultivation.

In addition, please rest assured that Nikola will never play any tricks to suddenly increase prices before delivery. Nikola does not bother to make that kind of money. "

The audience applauded and cheered again, these words were simply beautiful.

Especially when compared with the Tesla next door that suddenly increased its price by US$10,000 to US$110,000 before delivery, the difference is clear!

One is a technology company that cultivates the market, is committed to changing the way people travel in the future, and has lofty ideals;

One is a short-sighted businessman who kills the goose to obtain the eggs and is greedy for short-term profits.

There is no doubt that Nikola is cooler and more representative of the electric vehicle industry.

Listening to the deafening cheers from all around, Xia Jingxing glanced at Straubel, whose expression turned ugly.

"It's fine!"

Xia Jingxing said calmly: "We'll see. Musk is digging a hole for himself. I want to see how far Nikola One can control costs."

Hearing these words, Straubel's face brightened slightly.

As Tesla's new CEO, he is well aware of the manufacturing costs of the Tesla Roadster, which costs as much as $120,000 per vehicle.

They sell one for US$110,000, which means they lose US$10,000 on one unit.

Eberhard and Tarpenning seriously underestimated the manufacturing costs of the first car, and the initial pre-order price was set at $100,000, which was a huge mistake.

After this mess was handed over to him, after some consideration, he came up with a solution: increase the price of the car by US$10,000, and also subsidize each Roadster car subscriber with a US$10,000 discount coupon, which can be used when ordering the next vehicle. When using a Model S car, the coupon itself can also be transferred and sold.

All in all, users actually don’t suffer much loss. Even if they don’t order Model S, they can still sell coupons for eight to nine thousand US dollars.

For Tesla, a $10,000 price increase will reduce losses and ensure current cash flow.

After the Model S is launched, the 2,450 coupons issued can create another 2,450 orders. Even if the deduction is 10,000 US dollars, there should still be profits, and no matter how bad it is, it can also increase cash flow.

Straubel thought that the solution he came up with was reasonable and achieved multiple goals with one stone.

Judging from the cheers at the scene today, it seems that this solution is not satisfactory, and it has still caused some damage to Tesla's brand.

It hurt his face.

I don’t even have a good impression of the instigator, Musk!

This is clearly a deliberate attempt to step down on their Tesla.

At that time, Musk wanted to recruit him to be Nikola's chief technology officer, but luckily he didn't go.

Straubel took a deep look at Musk, who was triumphant on the stage. Wait, he will get back this sooner or later!

The prototype car launch conference was officially over, and countless people flocked to the information desk set up at the entrance of the hotel to inquire about reservations.

Xia Jingxing and Straubel pressed their hats on their heads and prepared to slip out of the door.

Musk looked at the hot booking scene and breathed a sigh of relief. If he didn't get some deposits, Nikola would soon go bankrupt.

If tens of millions of dollars can be recorded today, Nikola's tight financial situation will be greatly alleviated.

More importantly, with a batch of orders, Nikola can restart its stalled equity financing.

Therefore, Nikola attaches great importance to every prospective customer present today who has received an invitation letter.

Once someone leaves the hotel, Nicola arranges for employees to stand guard at the door to ask a few questions in an effort to convert prospective customers into customers.

"Two gentlemen, if time is not urgent, I suggest you go to the information desk here to learn about the Nikola One car booking discount. If you book a car now, you will have the opportunity to be invited to visit SpaceX's Falcon rocket launch Field, watch the spectacular scene of the rocket taking off at close range..."

Xia Jingxing glanced at the bearded engineer standing in front of the two of them. If it was a beautiful salesperson, he wouldn't mind discussing the principles of rocket launch with him.

But he was a slovenly engineer, which really made him less interested.

He had long heard how much Musk saved the company's costs and even controlled the company's toilet paper. But the other party did something wrong this time. He should not have let his own engineers sell it in order to save money.

However, having said that, other people who were not greedy for beauty and were interested in words such as rocket launch and SpaceX stopped and were immediately taken to the information desk.

"Sorry, sir, I have something to do and am in a hurry to leave, but I will carefully consider whether to order a Nikola One."

Dismissing the bearded engineer in front of them, Xia Jingxing and Straubel walked away quickly because they noticed Musk walking towards them.

"Hey, man, wait!"

Hearing Musk's voice, Xia Jingxing and Straubel moved faster. They didn't want to be blocked by Musk here.

Although it's not as serious as climbing over the wall to enter a competitor's factory, being blocked does not look good in terms of appearance.

Musk trotted over, but he was still one step behind and failed to catch up.

He stood next to the bearded engineer and glanced in the direction Xia Jingxing and Straubel were leaving. He felt as if he knew the two of them.

"Those two people are so strange. They are walking so fast and they don't stop even if I call them."

The bearded engineer spread his hands toward Musk, looking like I didn't know what to do.

After trotting all the way into the car, Xia Jingxing asked Zhang Chenguang to drive quickly, and then complained to Straubel, who was sitting in the back seat: "Xie Te! I will never come to spy on military affairs again. Musk's eyes are too good, almost He recognized us.”

What he didn't know was that the reason for the betrayal was because they were not dedicated enough. Musk came to attend Tesla's delivery ceremony and even put on a fake beard.

Straubel laughed loudly, "If I were blocked at the scene, I would definitely be ridiculed by Musk. That guy has a very vicious mouth."

Xia Jingxing nodded lightly. He had not forgotten that at the Santa Clara Auto Show more than two years ago, he caused a wave of hatred from Musk.

It was already noon when he returned to Tesla's office park. After a brief lunch at the company, Xia Jingxing went straight to work in the afternoon.

Americans don't have the habit of taking a lunch break. Xia Jingxing basically doesn't take a lunch break even after staying in the United States for a long time.

Because the research and development of Model S started, Tesla's cash on its books decreased sharply.

Fortunately, the Roadster is no longer on sale, otherwise the cash consumption will only be faster.

After nearly a year of production and delivery, all 2,450 Roadster orders have been completed.

Now Tesla has changed from a complex enterprise of R\u0026D, production and sales to a pure R\u0026D enterprise.

Looking at this year's financial report, Xia Jingxing was a little speechless. Operating cash flow had been negative for six consecutive years, and the US$50 million in Series E financing had already been spent.

Excluding the early investment from Eberhard and others, Tesla has completed five rounds of financing, with total financing exceeding US$160 million.

In addition to spending more than 25 million U.S. dollars to repurchase half of the shares of Eberhard and Tarpenning, and suffering a loss of more than 24 million U.S. dollars from selling cars, the remaining 110 million U.S. dollars were all spent on research and development.

However, the Roadster was still mass-produced and sold more than 2,000 units. The revenue of more than 200 million US dollars shows that Tesla is still like a car company. Even if it suffers heavy losses, it can at least build cars and sell them. It is definitely not What the outside world calls a PPT car building and financing game.

Capital has the ability to discern, and it understands that Tesla has passed many life-and-death hurdles at this time. Next, it only needs to improve the pricing strategy and optimize costs, and it can move towards profitability.

However, before that, Model S needs to be developed and built.

A round of Series F financing is still needed!

Xia Jingxing immediately made a decision in his mind, and when he was about to pick up the landline phone on the table and call Straubel, the landline phone rang first.

"Mr. Xia, we have a visitor..."

After hearing the announcement from the front desk, Xia Jingxing frowned slightly, paused for two seconds, and then replied: "Bring him in!"

Within two minutes, the blond receptionist led an old Chinese man with glasses and gray hair into Xia Jingxing's office.

"Mr. Xia, please don't take offense to your visit."

The old man had a smile on his face, but Xia Jingxing acted very coldly, pointing to the sofa next to him without making a sound.

"Mr. Xia, you are still angry with me! Hey, I really feel sorry for your trust and support all the time."

Xia Jingxing glanced at the old man and said calmly: "Dr. Xie, if you have anything to do, just tell me."

Xie Jiapeng smiled nonchalantly, "I founded a technology company that focuses on the research and development of three-electric systems. You are an investor who truly understands the electric vehicle industry and firmly believes that this industry will take off, so I hope to get your investment." .”

Xia Jingxing looked a little surprised, "You want me to invest?"

"Yes, the company I founded is called Atieva. It only develops electronic controls, motors, and batteries. It does not make complete vehicles. It is equivalent to a supplier of electric vehicles and will not compete with Tesla.

Electric vehicles are a promising industry. I judge that more electric vehicle companies will be born in the future. Tesla and Nikola are just the beginning. "

Xia Jingxing smiled and said, "Nicola started accepting reservations today. You must have heard about it, right?"

The old man nodded, "Yes, it is precisely because of this news that I am determined to come to you."

Xia Jingxing said nothing, thinking silently in his heart.

The old man opposite is called Xie Jiapeng. He is an early employee of Tesla and the vice president in charge of battery research and development.

Some time ago, Xie Jiapeng suddenly submitted his resignation letter. Xia Jingxing was in China at the time and personally called him to persuade him to stay, but he insisted on leaving Tesla.

After persuading him to no avail, Xia Jingxing had no choice but to give up, but he still had many opinions about Xie Jiapeng.

Tesla is now headed by him, a Chinese shareholder, and has never set obstacles for Chinese people in terms of promotions, salary increases, and option rewards. Xie Jiapeng has to leave for no reason, which makes him very puzzled.

Now that he heard the news about the other party starting a company, he basically understood and wanted to be the boss.

Still struggling blindly at the age of sixty is a sign of a martyr's ambition in his old age!

The company founded by the other party is called Atieva, isn't that Lucid Motors?

Xia Jingxing suddenly remembered that this company was well-known in the industry and had received investment from BAIC Group and Boss Jia in his previous life.

But later, because BAIC wanted the other party to focus on the Chinese market, and Xie Jiapeng wanted to delve deeper into the US market, the two sides had serious differences. BAIC simply transferred all the shares to Boss Jia, making Boss Jia's shareholding in the company once as high as 40%. Ranked as the largest shareholder.

Later, when LeTV collapsed, Boss Jia sold all his shares in Atieva and bet on FF.

Later, a wealthy man from the Middle East invested a large sum of money in Atieva, controlling two-thirds of the shares. The company also changed its name to Lucid Motors, changed its strategy, and began to build complete vehicles. The momentum was once great, and it was hailed as a strong competitor to Tesla. , former Tesla employee Avengers.

The reason why it is called this is because half of the company's founders, executives, and ordinary engineers come from Tesla.

Xia Jingxing was a little hesitant. If the other party had been deeply involved in the three power systems, he would have invested, and there would be no big problem.

But if you want to build a complete vehicle and poach Tesla's people on a large scale, then you are a competitor.

It is worth mentioning that in 2020, Lucid Motors' valuation had reached tens of billions of dollars and was about to go public.

If Boss Jia had gone ecological instead of screwing up, or had spent the funds he had given to FF to Lucid Motors, he might have returned to China smoothly and created a new business legend.

But things are so unpredictable, and Boss Jia’s FF cannot be mass-produced.

Seeing Xia Jingxing thinking seriously, Xie Jiapeng didn't say anything to urge him, and he was also thinking silently in his heart.

Looking for Xia Jingxing to invest was a decision he made after much thought.

First, the other party is very rich;

Secondly, the other party was willing to spend money on electric cars whose future was still unclear. During his time at Tesla, he found that he was never short of money, and financing was as easy as drinking water;

Finally, the other party is Chinese and respects me very much. He took good care of me during his tenure and even tried to retain me many times after he resigned.

"Are you sure Atieva will not develop into a competitor with Tesla?"

Xia Jingxing looked into Xie Jiapeng's eyes, and the latter said without hesitation: "I can say with certainty that as long as I am still in Atieva, I will not become a competitor with Tesla. Everyone has gone to dig gold mines, who will come? Where to sell water?”

Xia Jingxing chuckled. He remembered that it seemed like this. It was not until the company was dismissed by BAIC Group and Boss Jia and the Saudi Sovereign Wealth Fund took over that Atieva began to change its name and enter the vehicle market.

It seems that the other party did not intend to make a complete vehicle, but the actual controller behind it saw the attractive prospects of electric vehicles and changed its development strategy.

In particular, Saudi Arabia's sovereign wealth fund, a tycoon who made its fortune from oil, saw the increasing popularity of electric vehicles. They panicked and quickly made plans, no matter how much money they spent.

After thinking for a while, Xia Jingxing replied: "I need to think about it."

"OK!"

Xie Jiapeng stood up, held out his hand to Xia Jingxing and said, "No matter whether things succeed or not, I hope it will not affect our friendship."

Xia Jingxing smiled and said, "Of course, I still hope you can stay at Tesla.

But starting a business is also great! Have you heard of Workday? The founder is seventy years old, much older than you. "

Xie Jiapeng smiled slightly and then said: "In addition, I want to confess something to you. Venrock has been contacting another partner of mine, and they are also interested in Atieva."

Xia Jingxing pursed his lips and smiled, "Venrock, the famous Rockefeller family venture capital fund, okay, I understand, and I will make a decision as soon as possible."

Xie Jiapeng nodded slightly, turned and left.

After watching the other party leave, Xia Jingxing withdrew his gaze and began to think about how to deal with this matter.

Soon he made a decision in his mind and asked Fuxing Industrial Group to invest, just in time to hang out the Fuxing Automobile sign.